Bay City FHA Loans

BAY CITY, MI

FHA loans are mortgages created in the 1930's to help insulate lenders from credit risks and help promote home ownership. The Federal Housing Administration (hence, FHA) allows for lower downpayments and credit scores-- making these loans much more accessible than traditional mortgages.

FHA loans typically need just a 3.5% downpayment with credit scores of 580 or better. For credit scores between 500-579, the downpayment needs to be at least 10%.

While FHA loans make home ownership much more accessible to first-time homebuyers, they do require PMI (purchase money insurance)-- an additional insurance premium that is paid to the FHA to help cover defaults.

For additional requirements as defined by the FHA, click here.

Bay City's 54 lenders originated 447 FHA loans during 2021. The total origination value was $50,485,000, with an average FHA loan value of $112,942.

Bay City FHA Loans, 30 Year Fixed Rates

30 Year FHA mortgages in Bay City averaged 5.39% for the week of 2022-05-13, compared to the national average (all FHA variants) of 5.361% for the same period.

The average rate for the prior week (2022-05-06) was 5.72% and one month ago for the week of 2022-04-08, the average rate was 4.99%.

The average rate one year ago was 3.29%.

For refis of the same type during the week of 2022-05-13, the average rate was 5.22%.

Click on whitespace and scroll within the chart to zoom in/out. Larger bubbles equate with more originations.

Bay City FHA Loan Lenders by Rates & Fees

The below table looks at the average fees and rates for FHA 30 Year Fixed Rate (purchase, first lien) mortgages originated by each lender at the Bay City level.

Name # of Loans 2021 Avg. 30yFix Rate 2021 Avg. Total Fees
ACADEMY MORTGAGE CORPORATION 71 3.48% $5,612
QUICKEN LOANS, LLC 71 2.93% $4,707
The Huntington National Bank 15 3.08% $4,305
CARDINAL FINANCIAL COMPANY, LIMITED PARTNERSHIP 15 3.41% $5,592
MICHIGAN MUTUAL, INC. 14 3.71% $5,792
FREEDOM MORTGAGE CORPORATION 11 3.25% $2,544
ENVOY MORTGAGE, LTD 11 3.64% $5,170
LAKEVIEW LOAN SERVICING, LLC 8 3.11% $3,283
Independent Bank 8 3.91% $4,834
Mr. Cooper ( Nationstar Mortgage ) 7 3.61% $2,126
LAKE MICHIGAN CREDIT UNION 7 3.23% $4,407
CALIBER HOME LOANS, INC. 6 3.25% $5,395
FAIRWAY INDEPENDENT MORTGAGE CORPORATION 6 3.39% $6,399
GENEVA FINANCIAL, LLC 5 3.58% $4,670
UNITED WHOLESALE MORTGAGE, LLC 5 2.89% $5,240
PENNYMAC LOAN SERVICES, LLC 5 3.20% $2,950
VILLAGE CAPITAL & INVESTMENT LLC 4 3.12% $2,151
J. VIRGIL, INC. 4 3.00% $7,597
PLAZA HOME MORTGAGE, INC. 4 3.37% $5,045
TCF National Bank 4 3.03% $4,211
Carrington Mortgage Services, LLC 3 3.42% $5,181
MID AMERICA MORTGAGE, INC. 3 3.21% $4,235
NEWREZ LLC 3 3.21% $3,381
NORTHERN MORTGAGE SERVICES, LLC 3 3.25% $2,108
Fifth Third Bank 2 3.13% $5,349
Preston Home Loans Inc 2 3.25% $6,861
GOLD STAR MORTGAGE FINANCIAL GROUP, CORPORATION 2 3.62% $4,234
Paramount Residential Mortgage Group, Inc. 2 3.31% $4,754
AMERICAN FINANCING CORPORATION 2 2.69% $4,404
Mercantile Bank of Michigan 2 3.56% $4,343
Neighborhood Loans, Inc. 1 3.00% $5,749
GUARANTEED RATE, INC. 1 2.75% $4,323
Bank of England 1 3.00% $6,746
AMERIFIRST FINANCIAL CORPORATION 1 3.88% $3,791
ARK-LA-TEX FINANCIAL SERVICES, LLC. 1 3.38% $2,223
SOUTHWEST FUNDING, LP 1 4.25% $8,615
SOVEREIGN LENDING GROUP INCORPORATED 1 3.25% $9,504
STOCKTON MORTGAGE CORPORATION 1 3.75% $8,990
SUMMIT FUNDING, INC. 1 3.75% $7,211
The Federal Savings Bank 1 2.38% $9,960
AmeriHome Mortgage Company, LLC 1 3.13% $3,531
TOWNE MORTGAGE COMPANY 1 3.25% $4,799
First State Bank 1 3.25% $4,815
FIRST COMMUNITY MORTGAGE, INC. 1 3.00% $4,649
OCEANSIDE MORTGAGE COMPANY 1 2.99% $1,681
Home Mortgage Alliance Corp 1 3.38% $6,465
HOME POINT FINANCIAL CORPORATION 1 3.13% $4,221
HOMESIDE FINANCIAL, LLC 1 2.75% $6,276
UNION HOME MORTGAGE CORP. 1 2.75% $4,086
CROSSCOUNTRY MORTGAGE, LLC 1 3.63% $4,343
BROKER SOLUTIONS, INC. 1 2.88% $6,648
MORTGAGE 1 INCORPORATED 1 3.88% $4,190
BAYSHORE MORTGAGE FUNDING, LLC 1 2.75% $4,525
NATIONS RELIABLE LENDING, LLC 1 3.75% $5,817

The top Bay City FHA lender as defined by loan originations is ACADEMY MORTGAGE CORPORATION, with 71 FHA loans originated. Their average total fees are $5,612, which is $904 higher than the next largest lender, QUICKEN LOANS, LLC.

The lowest fee Bay City FHA lenders (with over 10 loans originated) are FREEDOM MORTGAGE CORPORATION ($2,544), The Huntington National Bank ($4,305), QUICKEN LOANS, LLC ($4,707), ENVOY MORTGAGE, LTD ($5,170) and CARDINAL FINANCIAL COMPANY, LIMITED PARTNERSHIP ($5,592).

The lowest rate Bay City FHA lenders (with over 10 loans originated) are QUICKEN LOANS, LLC (2.93%), The Huntington National Bank (3.08%), FREEDOM MORTGAGE CORPORATION (3.25%), CARDINAL FINANCIAL COMPANY, LIMITED PARTNERSHIP (3.41%) and ACADEMY MORTGAGE CORPORATION (3.48%).

Bay City FHA Loan Limits

Metro County Year Single Family Limit 2 Family Limit 3 Family Limit 4 Family Limit
BAY CITY, MI BAY 2022 $420,680 $538,650 $651,050 $809,150

FHA Loan Requirements

  • Borrowers must have a steady employment history or worked for the same employer for the past two years.
  • Borrowers must have a valid Social Security number, lawful residency in the U.S. and be of legal age to sign a mortgage in your state.
  • Borrowers must pay a minimum down payment of 3.5 percent. The money may be gifted by a family member. (Traditional mortgages do not permit gifted down payments)
  • New FHA loans are only available for primary residence occupancy.
  • Borrowers must have a property appraisal from a FHA-approved appraiser.
  • Borrowers’ front-end ratio (mortgage payment plus HOA fees, property taxes, mortgage insurance, homeowners insurance) needs to be less than 31 percent of their gross income, typically. You may be able to get approved with as high a percentage as 40 percent. Your lender will be required to provide justification as to why they believe the mortgage presents an acceptable risk. The lender must include any compensating factors used for loan approval.
  • Borrowers’ debt to income ratio (mortgage plus all your monthly debt, i.e., credit card payment, car payment, student loans, etc.) needs to be less than 43 percent of their gross income, typically. You may be able to get approved with as high a percentage as 50 percent.
  • Borrowers must have a minimum credit score of 580 for maximum financing with a minimum down payment of 3.5 percent.
  • Borrowers must have a minimum credit score of 500-579 for maximum LTV of 90 percent with a minimum down payment of 10 percent.
  • Bborrowers must be two years out of bankruptcy and have re-established good credit. Exceptions can be made.
  • Typically borrowers must be three years out of foreclosure and have re-established good credit.
  • The purchased property must meet certain minimum standards at appraisal. If the home you are purchasing does not meet these standards and a seller will not agree to the required repairs, your only option is to pay for the required repairs at closing (to be held in escrow until the repairs are complete).